ABSTRACT

Project Management Institute (PMI) has a standard by the name, OPM3 (Organizational

Project Management Maturity Model (OPM3), OPM3 has turn out to be an effective

model for organization to effectively implement policies and accomplish its goals

constantly and surely. This research study is the comparison between the Software

project management best practices in Pakistan and the organization project management

maturity model (OPM3) best practices.

The research provides a review of organizational project management (OPM), project

management office (PMO), types of maturity models, project management maturity

(PMM) and selecting the OPM3 model for the research. Furthermore, the research

provides OPM3 concepts; elements, domains, processes, components, construct, and an

application of the OPM3 assessment tool. Also this research provides the current

Software project management best practices in software industry of Pakistan. The scope

of this research is limited to the Software Project Management Domain and to the

Standardization level as per the OPM3 methodology.

One of the most powerful analysis considered sometimes is one that combines

quantitative (content analysis) and qualitative (textual analysis) evaluation of texts. In

this study, it has been tried to use both content and textual analysis approaches.

As the OPM3 improvement stages are recognized by the PMI as four main stages:

1. Standardization.

2. Measurement.

3. Controlling.

4. Continuously Improvement.

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The questionnaire comprising of twelve OPM3 and four own level of PMM interview

questions, which have been asked in face to face from twelve different experts of

software industry.

The data is then analyzed using both techniques:

i) Quantitative Content analysis

ii) Qualitative Textual Analysis

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1 CHAPTER ONE: INTRODUCTION

In this chapter the introduction of the thesis is provided. The scope of this research and

why the research has been carried out are briefly described in the start. Later, research

questions have been answered through this research and consensus on rationale response

have been developed after discussion. Classification, Research methodology limitations

of research are described in their respective chapters.

1.1 Purpose

The main purpose of this research is to critically review the Software project

management best practices in light of the best practices in OPM3.

What best practices for project management are used in Pakistans software

industry?

Why software industry in Pakistan is not using the best practices as per OPM3?

1.2 Scope of work

The research is limited in scope to know about the current best practices of software

project management in Pakistans software industry and compare it with OPM3 best

practices.

The work done during this study has briefly been described in below lines:

Identified Software project management best practices in Pakistan.

Identified differences between software project management best practices and

OPM3 best practices.

Interviews are conducted from different software industry experts to identify

Software project management best practices.

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 An open ended questionnaire is prepared to identify difference between

Software project management best practices in Pakistan and OPM3 best

practices.

Results are analyzed and finding are provided for software industry to improve

industry growth.

1.3 Research title

A critical review of current best practices following in Software project

management in light of best practices in PMIs OPM3 standard in Pakistan.

1.4 The Major Research Questions of the Study

The main objective of this research is to answer the following questions.

1.4.1 Research Question 1

What are the current best practices for software project management in

Pakistan?

1.4.2 Research Question 2

What are the differences between current best practices of software project

management and best practices of OPM3 standard?

1.4.3 Research Question 3

How to link best practices of OPM3 and best practices of software project

management in Pakistan?

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1.5 Theoretical framework

1.5.1 Interviews

Interviews are the primary data collection source for this research. Interview questions

were open ended and designed to do analysis of the current software project

management best practices and to get information about OPM3 best practices in

software industry of Pakistan.

1.5.2 Sample

Interviews were conducted with a project managers of 12 different software houses most

of them were having experience of more than 8 years in software industry of Pakistan.

1.5.3 Data Collection and Interview Protocol

100 percent of the interviews for this research have conducted in person. No other

communication medium was used to conduct the interviews.

Each interview was 15-20 minutes in duration. Interviews were conducted at a software

house.

Information about the purpose of the study was provided at the start each. Availability of

the interviewer was confirmed prior to the interview to ensure focused answers to the

interview questions.

1.5.4 Sources of Primary Data

For this research, extensive Interviews of concerned employees in software houses as per

the scope of study have been used as the primary data. In addition to interviews,

observation has been used to review the current best practices of software project

management and best practices of OPM3 standard.

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1.5.5 Data Collection Method(s)

Open ended interviews questionnaire prepared on the basis of Software project

management best practices and on the basis of OPM3 standard best practices.

Observation has also been used to collect the data in addition to interviews.

1.5.6 Data Analysis Method

Qualitative textual analysis of the interviews converted into text has been done for a

more powerful analysis.

1.5.7 Classification

This research study can be classified into explanatory, deductive research, descriptive

observational, investigative and applied.

1.5.8 Limitations of the Study

A variety of factors limited the extension of this research and/r constrained the

scope as in follows:

The Study is limited to Pakistans software industry only.

Lack of awareness and practice of project management and maturity knowledge

in

Software Industry of Pakistan.

Interviews are conducted from the software houses which are located in

Rawalpindi & Islamabad.

Lack of available and reliable data concerning the concepts of project

management

maturity within Pakistans software industry.

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 The study is time bound and has been completed within two semesters (eight

months)

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2 CHAPTER TWO: LITERATURE REVIEW

2.1 Maturity Models

A maturity model is a conceptual framework that describes the characteristics of

effective processes in areas as diverse as strategic business planning, business

development, systems engineering, project management, risk management, information

technology (IT) or personnel management (PMI OPM3, 2008).

Project Management Maturity models (PMMMs) provide an orderly means to

perform benchmarking and hence are adding substantial value to modern organizations

(Korbel and Benedict, 2008).

Previous researches referred the roots of maturity concepts to the Total Quality

Management (TQM) movement in which the results of applications of the statistical

process control techniques showed that in any maturity improvement process :1) the

variability in the process is reduced, and 2) the process performance is increased

(Cooke-Davies and Arzymanowe, 2003).

As the modern maturity models, the Software Engineering Institute (SEI) of

Carnage-Mellon University between 1986 and 1993 (Schlichter J. 2003) developed the

Capability Maturity Model (CMM) (which has improved later to CMMI) to obtain the

objectives through continuum improvements by improving the quality of the software

development processes (Paul et al., 1993).

Previous studies showed that there are many types of maturity models that are

developed according to different functions and applications of project management maturity

processes. According to Kohlegger et al (2009), there are over 70 different maturity models

that have different characteristics, therefore, it is significant to have clear understanding of

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each model before developing or revising it (Kohlegger et al., 2009, cited by Karim,

S.B.A. et al., 2014).

Below are the different levels of different maturity models.

Figure1: Automated Software Testing Maturity Model (ASTMM)

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 Figure2: Capability Maturity Model Integration

Figure3: Configuration Management Maturity Model

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 Figure4: Organizational Project Management Maturity Model

(Karim, S.B.A. et al., 2014) explained that there are 25 examples of maturity

models that are used for the assessment and improvement project management

performance within different organizations and companies, as follows:

1. Automated Software Testing Maturity Model (ASTMM),

2. Capability Maturity Model for Software (SW-CMM),

3. Capability Maturity Model Integration (CMMI),

4. Configuration Management Maturity Model,

5. Earned Value Management Maturity Model (EVM3),

6. Information Process Maturity Model (IPMM),

7. Integrated Product Development Capability Maturity Model (IPD-CMM),

8. IT Architecture Maturity Model,

9. Information Technology Infrastructure Maturity Model (ITI-MM),

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 10. IT Service Capability Maturity Model (IT Service-CMM),

11. Operations Maturity Model (OMM),

12. Organizational Project Management Maturity Model (OPM3),

13. Outsourcing Management Maturity Model,

14. People Capability Maturity Model (P-CMM),

15. Performance Engineering Maturity Model (PEMM),

16. Portfolio, Program and Project Management Maturity Model (P3M3),

17. Program Management Maturity Model,

18. Project Management Maturity Model (PMMM),

19. Service Integration Maturity Model (SIMM),

20. Risk Management Maturity Model (RMM),

21. Software Engineering Capability Maturity Model (SE-CMM),

22. Software Reliability Engineering Maturity Model,

23. Testing Maturity Model for Quality Assurance (TMM),

24. Web Services Maturity Model, and

25. Website Maturity Model.

Different project management maturity models (PMMMs) are due to different

sectors, scope, levels, self-assessed, facilitator-led, and accreditation for each model

applied by different organizations with different business activities (Montero G., 2013).

This means that not all PMMMs are the same and not applicable for all companies,

organizations, and firms. Some PMMMs are applicable for software institutes, others for

human capital.

Organizational Project Management Maturity Model (OPM3) which is developed

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by Project Management Institute (PMI), is one of the effective and instrumental

PMMMs. This research has selected OPM3 as the best PMMM that can be more

applicable to conduct the assessment processes and desired improvements..

2.2 Definitions

2.2.1 What is project?

A project is a progression of multi-functional tasks and activities that have a particular

target to be finished inside specific specifications within the defined start and end dates,

finance limits, and devour human and non-human resources. (Kerzner, 2009). It is also

defined as a temporary effort undertaken to create a exclusive product, service, or

result (PMBOK Guide, 2013).

A project can be defined as an endeavor in which human, material and financial

resources are organized in a novel way, to undertake a unique scope of work, of given

specification, within constraints of cost and time, so as to achieve beneficial change

defined by quantitative and qualitative objectives (Turner and Muller, 2003).

According to Meredith and Mantel a project is a specific, finite task to be

accomplished (Meredith and Mantel 2009). Project is also defined as a temporary

organization that is created for the purpose of delivering one or more business products

according to an agreed Business Case (OGC, 2009). Projects are defined as a locus of

attention for strategy implementation and organizational and project learning (Pemsel et al

2014).

From the literature above, it can be understood that each project has its parameters as

time, cost, scope, schedule and quality. In addition, each project has its specific resources

and limitations/constraints such as: definite start and deadline, specific allocated budget,

human resources with variety of skills and knowledge, tools and mechanism,

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Technologies, materials, regulations and laws concerning the environmental and safety aspects,

and finally , but importantly, the shareholders/customers satisfaction. These factors almost

always vary from one project to another and significantly impact on project type, size, and

complexity. Therefore, different projects need different scenarios of project management

processes to achieve project objectives.

2.2.2 Project Management

Due to the dynamic nature of projects in terms of type, size, and complexity,

project managers face continuous challenges in terms of uncertainties in the industry

environment, financial conditions, political aspects, technological improvements, and availability

of work force and materials for the projects. These uncertainties create different scenarios for

project managers to select and perform an optimal approach in managing their projects through

the project life cycle in which the projects outcomes align with the organizations objectives.

Therefore, understanding project management knowledge has become the key and essential

requirement.

From the literature review of the history of project management, it can be found that for

centuries, project management basically has been used to create change or deal with change in

societies, however, in 1950s, project management was recognized formally as a distinct

contribution arising from the management discipline (Cleland and Gareis, 2006).

The project management evolution has started as a management philosophy limited to a

few functional areas and considered as a nice thing to have, however, to

survive, many organizations within the firm consider project management as being mandatory

and project management has become an important field of study in many colleges and

universities (Kerzner 2009).

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 For many organizations, in order to satisfy the different needs of application areas within

a variety of industries and organizations, many organizations adopt project management as an

important means to characterize, define, and understand this field to emphasize strengths, bases,

and development (Bredillet, 2006).

According to Roland Garies (1994), there are two main approaches of project

management based on the way in which projects are observed; first, traditional method-oriented

project management approach which is based on the insight of projects as tasks with special

features, and second; systematic and process-oriented project management approach which is

based on the perception of projects as temporary organizations and as social systems. Project

management can be defined as the discipline of planning, organizing and managing resources to

bring about the successful completion of specific project goals and objectives (Chatfield, 2007).

The PMI, under its publication (PMBOK Guide 5th edition 2013), defines project

management as the application of knowledge, skills, tools, and techniques to project activities to

meet the project requirements. Also, the PMI PMBOK Guide defines the project management

process groups as:

Closing Initiation

Monitorin
g and Planning
Control

Execution

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Furthermore, it is significant for organizations to identify, plan, manage, and control

each of the areas of project management knowledge (PMBOK Guide, 2013).

2.2.3 Organizational Project Management (OPM)

Organizational Project Management (OPM) is the systematic management of projects,

programs, and portfolios in alignment with the achievement of strategic goals (PMI OMP3

Knowledge Foundation, 2003).

OPM is a strategy execution framework utilizing project, program, and portfolio

management as well as organizational enabling practices to consistently and predictably deliver

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organizational strategy producing better performance, better results, and a sustainable

competitive advantage (PMI, PMBOK Guide, 2013).

OPM integrates the knowledge of (project, program, and portfolio) management,

organizational strategy (mission, vision, objectives, and goals), people (having competent

resources), and processes (the application of the stages of process improvement) (PMI OPM3

2013).

2.2.4 Project Management Office (PMO)

The continuous change in the industry environment creates more challenges for

Organizations to survive and gain profit within dynamic competitive environment. For that,

organizations should implement different polices to gain competitive advantageous. Different

policies develop organizational changes within the organizational structure and organizational

context. The significant way to solve issues associated with these changes is to establish/embed

an effective entity within dynamic organization structure which is known as Project Management

Office (PMO) entity (Aubry et al 2010).

Since 1990s, PMO has become a significant and common phenomenon in project

management that many organizations are interested in to improve and sustain as specialized

organizational entity (Hobbs and Aubry 2007).

Dai and Wells (2004) noted that despite adapting project management process within

organizations, many projects fail due to lack of strong project performance, therefore, the key

solution is establishing project management office. The PMO, also known as a center of

excellence/experts, is defined as an organizational entity necessity to support project managers,

teams and different management levels within the organization in successfully implementing

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project management concepts, tools, and techniques (Dai and Wells, 2004).

According to the PMI PMBOK Guide (2013), PMO is a management structure that

standardizes the project-related governance processes and facilitates the sharing of resources,

methodologies, tools, and techniques.

PMO can refer to (Portfolio, Program, or Project) management office and can be defined

as an organizational body assigned with various responsibilities related to the centralized and

coordinated management of those projects under its domain. (PMI OPM3 Knowledge

Foundation 2013). The range of PMO responsibilities can be from providing project

management support functions to actually being responsible for the direct management of one or

more projects. (PMBOK 2013).

To keep the consistency and alignment between the projects and programs with the

organizations objectives, a PMO can take a delegated role as an essential stakeholder to decide on

significant actions regarding the organizations projects (PMI OMP3, 2013).

Based on PMBOK Guide 2013, a PMOs primary function is to support project

managers in many different ways, such as; developing and managing shared documentation

(project policies, procedures, and templates); coaching, mentoring, training, and oversight;

Managing shared resources across all projects administered by the PMO; and coordinating

communication across projects (PMBOK Guide, 2013).

From previous researches and descriptive surveys, posed to number of organizations regarding

the existence of PMOs, the value of PMOs for organizations is often debatable (Gorshkova E.,

2011), as in the following examples;

- 42% of the respondents confirmed that the relevance or even the existence of the
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 PMO been seriously questioned in their organizations in recent years (Hobbs et al,

2007).

- 60% of respondents claimed that the value of PMO being argued by the senior

management, project/program managers, or customers (ESI International, 2011).

- 41% of respondents from non-PMO staff found role fulfilment by PMOs in their

organizations moderately good or poor (ESI International, 2011).

Based on the degree of control and influence that PMO has on projects within the

organizations, there are several types of PMO structures; supportive, controlling, and directive in

which each type has its own role, deliverables, the service provided to projects, and the degree of

controlling the projects (PMBOK Guide 2013) which can be illustrated as in Table 1.

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 Table 1. Types of PMO Structures

PMO
PMO PMO PMO PMO
Degree of
Type Role Deliverables Service
Control

Supportive Consultative - Templates, Project repository Low

- Best practices,

- Training,

- Access to information, and

- Lessons learned from other

projects.

Controlling Controlling - provide support and require Project Controls Moderate

PMOs compliance (PM frameworks or

methodologies) through various

means,

- using specific templates,

forms and tools, or

conformance to governance.

Directive Directing Directions of projects Directing project High

PMOs controls

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2.2.5 Types of Organizations

Organizations ability to deliver projects successfully is influenced by the organizational

structure which determine the communication requirements, responsibilities, and management

reporting structure (PMI PMBOK Guide, 2013). To manage a project, a specific company or an

authority has to set up a project group, which can supply the different kinds of resources for the

project and service it during its complete life cycle (Lester A, 2006). Kerzner defines three types

of organizations as; project-driven, non-project-driven, and hybrid organizations (Kerzner,

2001). While Lester classifies these types as; functional, matrix, and project or task force (Lester

A, 2006).

The PMI PMBOK Guide (2013) explains the three types of the organizations as follows:

a) Functional organization: is an organizational structure with different departments that

are independent from each other in implementing the project assigned to each

department. Each employee has one clear superior in the organization hierarchy and the

team members are assigned by their specialty at the top level for different divisions such

as engineering, production, marketing, and accounting.

b) Matrix organization: has characteristics between the functional and projectized

organizations, and rather it can be categorized as weak, balanced, or strong depending on

the level of power and influence between managers of functional and projectized

organizations. The more projectized characteristics the matrix organization has, the

stronger the matrix organization is and vice versa. While the balance matrix is in between

depending on the project management needs of the power and authority of project

managers to balance between the coordination and administration of the projects.

c) Projectized Organization: is an organizational structure with different departments in

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 which team members are co-located and can report to the project manager or support

services to the different projects. The project manager has a great deal of authority and

independence. The co-located teams are well collaborative and communicated to obtain

the project teams objectives successfully.

2.2.6 Project Based Organizations (PBOs)

PBO, as explained in the previous section, is one of the organizational structures that

organizations have depending on the organizational management characteristics regarding to the

power, authority, and independence of project managers across the organizations

departments/divisions.

Based on some studies, the PBO is preferable among many organizations rather than the

functional and matrix organizations assuming that PBO is more suitable for organization

management in terms of increasing product complexity, fast changing markets, cross-functional

business expertise, customer-focused innovation and market, and technological uncertainty.

(Hobday 2000).

According to PMI PMBOK Guide 2013, PBOs is defined as a variety of organizational

forms that involve the creation of temporary systems for the performance of projects. PBOs conduct

the majority of their activities as projects and/or provide project over functional approaches. PBOs

emphasizes on projects rather than functional approaches to conduct the majority of their activities to

provide more advantages that other types of organizations. PBOs manage portfolios and resources in

a way that ensure high level of integration, effective communication, more project emphasis (PMI

OPM3, 2013).

PBO is considered as the ideal type of project organization by which the project manager has

complete control over every aspect of the project (Lester 2006).

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2.2.7 Portfolios, Programs, and Projects

A portfolio refers to a collection of projects, programs, subportfolios, and operations

managed as a group to achieve strategic objectives (PMI PMBOK Guide, 2013). Programs consist

of subprograms and individual projects that are managed with better performance and outcomes than

if these projects are managed individually. The projects within a portfolio may not be included to any

programs but are linked to the strategic plan of the organizations portfolio. Therefore, the

relationship between the programs and projects may not necessarily be interdependent or directly

related, however, they are linked to the strategic plan of the organizations portfolio (PMI PMBOK

Guide. 2013). Figure 2 illustrates the relationships between portfolios, programs, and projects.

Figure5: The Relationships between Portfolios, Programs, and Projects

(Modified from PMI OPM3, 2013)

2.2.8 Maturity Concept and Definition

As the industry environment has seen dramatic change recently and become more complex,

the application of management skills, tools, approaches, techniques, and technologies become

imperative for organizations to increase their efficiency and productivity. Many organizations
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nowadays are working to deal with more than one project to increase the return of investment. In

order to sustain and compete within the dynamic competitive business industry, they improved their

organizational project management continuously to fulfill its strategic objectives.

Therefore, to obtain this significant objective, it has become critical for organizations to

continuously assess its organizational management performance by repeatedly evaluate,

measure, standardize, and conduct improvements processes for better future. By proceeding

these imperative steps, the organization can assess its maturity in terms of project management

performance. Accordingly, organizations need to have a clear understanding of maturity concept.

Many resources (dictionaries and researches) have defined the maturity word in

different ways and perspectives. For instance, the word maturity is defined as the state or

conditions of being mature, ripe, fully developed, and approaching perfection (Websters

dictionary) and having reached the most advanced stage in a process (the Oxford Dictionary of

English Dictionary (ODE 2010), we can say that maturity is the quality or being mature.

A maturity is defined as an amalgam of education, ability, confidence and willingness to

take responsibility. (Lester 2006). In general, the theory of maturity, has been the subject of a

remarkable number of studies, and this idea progressed into what is now known as maturity (Dinson,

2003). To define the maturity to an company, it can be refer to a perfect state of the organization to

achieve its objectives (Walker et al., 1995).

Maturity is also defined as one of the organizational life cycle phases. In Kerzner project

management maturity model (PMMM), the maturity is the fifth (last) phase of the life-cycle

phases for project management maturity, which are: Embryonic Phase, Executive Management

Acceptance Phase, Line Management Acceptance Phase, and

Maturity Phase (Kerzner 2009). In addition, Kerzner defines project management

maturity as the development of systems and processes that are repetitive in nature and provide a

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high probability that each project will be a success.

While in the PMI OPM3 model, the organizational maturity phase is located as the third

phase between four phases as: Birth or Startup, Growth, Mature Operation, and Decline or

evolution. (PMI OPM3, 2013), and the PMI defines the maturity concept as the degree to which an

organization practices organizational project management.

On the other hand, the PMI OPM3 defines the maturity through the existence of best

practices in which a best practice is an optimal way currently recognized by industry to

achieve a stated goal or objective (PMI, 2003).

The project management maturity is the sophisticated level of an organization which

indicates the current organizations project management performance, processes, and practices

(Ibbs and Kwak 2000).

Furthermore, project management maturity is the progressive development of an

enterprise-wide project management approach, methodology, strategy, and decision-making

process (International Journal of Business Administration 2006).

For any organization to deliver successful projects it is critical to understand the

organizational project management maturity (OPMM) as the level of an organizations ability to

deliver the desired strategic outcomes in a predictable, controllable, and reliable

manner.(PMBOK Guide, 2013).

The maturity level has become an indicator to organizations performance and efficiency.

Based on (Pennypacker, 2002) studies, 30% of mature organizations showed more than 25%

improvement when compared to less mature organizations. Accordingly, it can be concluded

that the higher the maturity levels of an organization, the better its performance in all observed

areas (Pennypacker and Grant ., 2006).

According to a study conducted by PricewaterhouseCoopers (PWC), 200 respondents

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reported an average maturity score of 2.5, furthermore, the findings concluded that the percent of the

companies that wished to increase their maturity level was 60% and 71% for those who wanted to

increase their level by more than one step (Oforil and Deffor, 2013).Grant and Pennypacker (2006)

conducted a survey of 126 organizations from different industries, the results showed that the median

project management model level is to 2 out of 5 with respect to 36 of the 42 components analyzed.

Accordingly, maturity concept has become a significant process for many organizations seek higher

performance and efficiency to manage their projects successfully with the desired outcomes.

On the other hand, (Andersen and Jessen, 2003), mentioned that there is no fully matured

organization in the real world that has achieved the highest level of developments and no one

will.

Organizations attempt and desire to have higher level of maturity, however, the process

to achieve any desired level of maturity needs the implementation of effective and suitable

standard methodology and processes such that there exists a high likelihood of repeated

successes. (Kerzner, 2009), in other words, the process requires the implementation of

structured approach, known as Maturity Model. (Andersen and Jessen, 2003).

2.3 OPM3 Concepts

2.3.1 Introduction

For any organization to survive, sustain, and keep on track, it is essential to manage

the potential changes within the organizational structure (internal changes) and the industry

environment (external changes). The internal change has become an imperative to fulfil the

organizational strategic objectives in alignment with the value interests of variety of disciplines

and stakeholders within the organization. Conversely, the external changes are inevitable due to

dynamic competitive environment of the industries, in which other competitors continuously

attempt to gain a competitive advantage to face possible challenges that may increase the
26
potential threats to the organization.

For successful outcomes from the change management processes, organizations should

implement its strategy successfully, consistently, and predictably, and one of the best ways to

achieve this goal is to adopt an appropriate standard/model, such as Organizational Project

Management Maturity Model (OPM3).

In this chapter, the research provides an overview of OPM3 including the OPM3

concepts and definition, the history of OPM3, benefits of OPM3, examples of OPM3 application,

OPM3 elements, OPM3 domains, OPM3 processes, OPM3 construct, and OPM3 assessment

tools and processes.

2.3.2 What is OPM3

The Project Management Institute (PMI) defines the OPM3 as an acronym for

Organizational Project Management Maturity Model, and it is a standard developed under the

supervision of the PMI. (PMI OPM3, 2003). This norm is an helpful way to help firms to

recognize its organizational management and to assess its organizational project management

maturity depending on well-known best practices. OPM3 is an effective way to link the gap

between the organizational strategy and successful projects (PMI OPM3 Knowledge

Foundation, 2003).

The OPM3 program objective is to support firms to enhance the skills that toughens the

enterprise-wide procedures used in the areas of Portfolio, Program, and Project management within

the firm in alignment with the strategic objectives (Kevin P. Grant and James S. Pennypacker, 2006).

OPM3 is a significant means to increase the performance within organizations through a positive

relationship between organizational project management and the performance of the participants in

the project.

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 Integrating OPM3 into organizational project management processes changes the

portfolio, program, and project domain processes into high-quality that are well understood,

repeatable and predictable (PMI OPM3, 2003). Relating OPM3 with other PMMMs, the PMI

indicated that OPM3 is more flexible and scalable than other models in which any organization

can adopt it, regardless of types, sizes, complexity, geographic location, age, maturity, and other

factors (PMI OPM3, 2013).

OPM3 model can be applied for any domain of Project, Program, or Portfolio (PPP)

management and to any level of the process developments phases;

Standardization, Measurement, Control, and Continuous Improvements (SMCI)

2.3.3 History of OPM3

The history of OPM3 started in 1998 as a story of a team established by the PMI,

in which hundreds of unpaid volunteers from variety of professionals across the world joined the

process to put the first cornerstone to develop an international standard. The Capability Maturity

Model (CMM), developed by the SEI, was the common maturity model at that time, and the PMI

standards teams determined developing such standard and even better. This standard was

considered by the PMIs team as the first of its kind based on several characteristics that may

distinguished this standard/model from other PMMMs. According to (Schlichter, J. et al. 2003),

some of these characteristics are:

- The OPM3 standard can help organizations to measure and improve their project

management as well as the skills necessary to achieve organizational strategies

through projects,

- The OPM3 standard as a PMMM to set standard for excellence in project PPP

management best practices and explain the skills necessary to achieve these best

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 practices.

- Extensive participation from more professionals across industries and geographies

than any other initiative to develop a maturity model to date.

In 1999, John Schlichter became the Program Director of the OPM3 Program after he joined

the PMI Standards Member Advisory Group (Standards MAG). He assembled

a core team called as the Guidance Team which was grouped from 800 of volunteers across 35

countries to participate in the program and they spent between four to five years to create the

OPM3 standard (Schlichter, J. 2009).

The mission of the program was to develop a maturity model that delivers methods for

evaluating and emerging skills that enhance an firms ability to deliver projects successfully,

constantly, and certainly in order to achieve the strategies of the organization and improve

organizational efficiency. The leaderships idea was to create a broadly and willingly validated

maturity model that is recognized internationally as the standard to develop and assess PM

Capabilities within any organization (Schlichter, J. et al., 2003).

The PMI research teams identified 27 PMMMs, accordingly, seventeen sub-teams were

formed to review a representative selection of those models. Based on the results of sub-teams

research, the OPM3 leaderships at the PMI found that there are questions left unanswered by the

existing models regarding project management maturity. Therefore, the OPM3 would significantly

benefit PMIs stakeholders. The main objective of the research was to develop best practices in

project, program, and portfolio management. These best practices were defined as Capability

Statements and Outcomes Statements.

In the earlier stages of emerging OPM3 standard, the Self-Assessment Module (SAM),

(as known as OPM3 Online assessment tool), was used by many organizations and companies

29
for assessment OPMM. However, the SAM (OPM3 Online) was no more used because of some

problems, as Schlichter mentioned:

- The users of OPM3 Online tool had to answer about 150 questions including project,

program, and portfolio management at the same time which could not be emphasized on

a specific area required to be assessed and improved.

- OPM3 Online questions only allowed simple Yes or No answers which

could not give partial credit for partially implemented best practices. Therefore, the

second OPM3 assessment tool was developed as (OPM3ProductSuite). This tool is

more flexible and applicable than the OPM3 Online tool and it helps the organization to

determine actual maturity per the Capability-Outcomes of the OPM3 Standard. Thus,

select specific area for assessment and improvement without conducting the process

through the entire areas of project management improvements across the organization.

The PMI has published the first edition of OPM3 standard as Project Management

Maturity Model (OPM3) Knowledge Foundation in 2003, the second edition in 2008, and the

third edition in 2013. In these publications, the PMI incorporated the knowledge from its most

famous publication of Project Management Book of Knowledge Guide (PMBOK Guide), which

has five versions/editions (the 1st edition was published in 1987, and the 5th in 2013).

The OPM3 standards help the organizations to improve organizational project

management for project, program, and portfolio by convert strategy into successful results in a

constant and expected manner through its three key elements;

1) Knowledge,

2) Assessment

30
 3) Improvement

2.3.4 What Does OPM3 Do?

(PMI OPM3, 2003) indicated that OPM3 application effectively supports organizations to

increase its efficiency and PM performance by:

- Integrating the cooperative knowledge of the OPM community from a varied

assortment of businesses and different locations,

- Recognizing and forming generally accepted and proven OPM practices,

- Support organizations to evaluate its current maturity and how to step for higher

level of maturity in the future,

- Developing a framework to assess organizations practices compared to OPM3 Best

Practices,

- Developing a guideline based on the assessment results to guide organizations to

achieve further improvements, and

- Supporting organizational decision making to be ready for any potential changes.

2.3.5 OPM3 Benefits

OPM3 application significantly benefits organizations, senior management, and

participants in the PM processes through wide range of benefits (PMI OPM3, 2013) as in

the followings:

- Enhance the relationship between organization strategy and project execution,

- Deliver projects predictably and reliably,

- Increase organization efficiency,

- Improve PM performance,

- Increase productivity,

31
 - Increase profitability,

- Decrease cost and rework,

- Increase market share,

- Improve customer satisfaction and,

- Provide competitive advantage.

2.3.6 OPM3 Purpose

The main purpose of OPM3 is to confirm that:

- The organization brings out the right projects and gives resources properly,

- There is a clear understanding of the linkages between strategic vision, the initiatives

that support the vision, and the aims and deliverables to be completed by portfolios

of programs and projects, and The stakeholders are aligned with market demands.

2.4 OPM3 Key Elements

OPM3 contains three key elements:

2.4.1 Knowledge

Presents the insides of OPM3 including an executive summary, a explanation to

understand OPM, definition and application toward organizational management maturity, terms

of OPM3 standard, OPM3 steps, OPM3s appendices, glossary, and indices. (PMI OPM3,

2003).

2.4.2 Assessment

Supports the firms to calculate their current OPM and organizational project management

maturity level to be compared with OPM3 standard.

32
2.4.3 Improvement

After conducting the valuation process, the firm can identify new set of Competences

which supports the organization to plans for future enhancements.

2.5 OPM3 Domains

According to the Project Management Institute (PMI) and the PMBOK Guide,

the organizational project management can be divided into three domains as following:

2.5.1 Project Management Domain

The basic domain of OPM3 is the Project Management Domain which deals with

individual projects. Two or more projects can comprise the second domain as Program

Management Domain.

2.5.2 Program Management Domain

OPM3 context defines a program as a group of related projects managed in a

coordinated way to obtain benefits and control not available from managing them

individually.

2.5.3 Portfolio Management Domain

A portfolio domain is comprised of a group of programs, projects, and other work

grouped together to provide effective management to achieve the organizational objectives

successfully, consistently, and predictably.

2.6 Organizational Project Management Processes

PMBOK Guide - Chapter 3, explains that the project management domain consists of

five process groups as follows:

33
 Initiating
Process
Group (PG1)

Closing Planning
Process Process
Group (PG5) Group (PG2)
PM-
Processes

Monitoring
and Executing
Controlling Process
Process Group (PG3)
Group (PG4)

2.7 OPM3 Best Practices

The PMI defines a Best Practice as an optimal way currently observed by industry

to achieve stated goal or objective. For organizational project management this includes the

ability to deliver projects predictably, consistently, and successfully to implement organizational

strategies.

2.7.1 Best Practice Constituent Components

2.7.1.1 Capabilities

A Capability can be defined as a specific competency that helps an organization to execute project

management processes and deliver projects management services and products. The existence of

successful Outcomes is important to determine Capabilities, by which two or more Capabilities are

aggregated to make one Best Practice (PMI, 2008).

2.7.1.2 Outcomes

The application of a Capability leads to number of tangible or intangible

34
Outcomes.

2.7.1.3 Key Performance Indicators (KPIs)

The Outcomes that are created by the application of a Capability can be determined either

quantitatively or qualitatively by a criterion called Key Performance Indicator (KPI).

2.8 OPM3 Improvement Stages (SMCI)

The OPM3 improvement stages are recognized by the PMI as four main stages:

1. Standardization,

2. Measurement,

3. Control, and

4. Improvement

These are the stages that each organization should obtain them stage after stage to

achieve desired improvement for the organizational management processes.

The Competencies follow the process enhancement path of Standardize, Measure,

Control, and Continuously Improvement (SMCI).Organizational Enablers (OE) Best Practices:

the Competences DO NOT follow the SMCI process enhancement path (PMI OPM3, 2008).

2.9 Organizational Enablers (OEs) Best Practices

They are (Structural, Cultural, Technological, and Human-resource) practices that

can be leveraged to support and bear the implementation of Best Practices (PMI OPM3, 2013).

The PMI OPM3, 2013 categorizes the OEs as follows:

- Sponsorship,

- Governance,

- Benchmarking,

35
 - Strategic Alignment,

- Organizational Project Management Policy and Vision,

- Organizational Project Management Techniques,

- Organizational Project Management Methodology,

- Organizational Project Management Practices,

- Organizational Project Management Communities,

- Resource Allocation,

- Project Success Criteria,

- Project Management Metrics,

- Organizational Structures,

- Management Systems,

- Project Management Training,

- Competency Management,

- Individual Performance Appraisals,

- Knowledge Management and Project Management Information System (PMIS)

2.10 Dependencies and Interrelationships among OPM3 Components

The PMI concluded that organizational project management maturity is increased by

achieving the SMCIs Best Practices within the project management domains of projects,

programs, and portfolios, supported by the Organizational Enablers (OEs) Best Practices.

2.11 OPM3 Maturity Assessment Tools

The PMI developed two different tools to assess current state of maturity of an

organization and then use the outcomes of this assessment to improve the organization maturity

36
stage in the future. These two assessments tools are explained as follows:

1) Self-Assessment Module (SAM) also known as (OPM3 Online) assessment tool.

2) OPM3 ProductSuite assessment tool.

2.11.1 SAM/ OPM3 Online

When the PMI research teams developed OPM3 standard in 2003, it provided the

Self-Assessment Module (SAM). First, the tool was offered as a CD accompanying the book of

OPM3 Knowledge Foundation- First Edition-2003. Later, it was offered as an online process via

the Internet and was known as OPM3 Online 2. The process consists of (151) questions to be

answered only by Yes or No.

The PMIs experts realized that the (SAM) or OPM3 Online was ineffective tool for

assessing and implementing OPM3. Therefore, PMI withdrew the OPM3 Online assessment tool

and reverted to the better tool created in 2005, which is called (OPM3ProductSuite).

2.11.2 OPM3 ProductSuite Assessment Tool

As an effective tool to better assess and develop an organizations maturity, PMI aided by a

strategic partnership, Det Norske Veritas (DNV) a Norwegian Company, developed the (OPM3

ProductSuite) assessment tool to be used as an effective tool to evaluate and improve organizations

maturity. It has three elements; certification, tools, and services. OPM3 ProductSuite is a

combination of advanced tools that achieve the standards original intention of assessing

organizations in terms of the capabilities and outcomes that are in the best practice buckets.

(Schlichter J., 2009).

The OPM3 ProductSuite consists of 488 Best Practices (BPs) and 412 of them are

pertained to the Standardization, Measurement, Control, and Continuous Improvement of the

(Project, Program, and Portfolio) Management Processes. Each domain has its specific number

37
of processes (42, 47, 13) respectively. And each process requires (15) Capability-Outcomes, in

which all together producing (1,530) Capability-Outcome statement as in Figure 6.

Figure6: OPM3 ProductSuite and Capability-Outcome Statements

2.12 OPM3 Improvement Cycle

For an organization to apply the OPM3 standard, it is very important to understand

the fundamental steps of OPM3 assessment and improvement stages. The PMI has indicated that

the main steps for assessment and improvement are five steps;

1) Preparation for the Assessment,

2) Perform Assessment,

3) Plan for Improvements,

4) Implement Improvements, and

5) Repeat the Process.

38
2.13 Venn diagram

Pakistan
Software
Industry

Software
OPM3 Best
Project
Practices
Management

Figure 7: Venn diagram

39
3 CHAPTER THREE RESEARCH METHODOLOGY

3.1 Preface

In this chapter the research methodology used to achieve the objective of this research study is

described. It describes the data collection method and the techniques used for the investigation

of the data to obtain the results.

3.2 Research Methodology

It is a qualitative research in which delphi technique has been used to ask experts

opinion. Open ended interview for software project management best practices & for OPM3

standard has been prepared to ask all experts. The interview questions has been analyzed and

summed up and the results has been shared with all stakeholders.

40
3.3 Research Process Research Problem
Identification

Define Search
Objective

Literature Review

Pakistan
OPM3 Software
Industry

Data
Collection
(Inputs)

Pakistans
OPM3 Best Data Analysis Software
Practices Industry
Best
Practices

Assessment Results

Conclusions &
Recommendations

Figure 8: Research Process

41
3.4 DATA COLLECTION

Data collection method includes:

1. OPM3 standard for OPM3 best practices.

2. Questionnaire for software project management best practices in Pakistan.

3.5 DATA ANALYSIS

One of the most powerful analysis considered sometimes is one that combines quantitative

(content analysis) and qualitative (textual analysis) assessment of texts. In this study, it has been

tried to use both content and textual analysis approaches.

As the OPM3 improvement stages are recognized by the PMI as four main stages:

Continuously
Standardize,
Improve

Control Measure,

The questionnaire comprising of twelve OPM3 and four own level of PMM interview questions,

which have been asked in face to face from twelve different experts of software industry.

42
The data is then analyzed using both techniques:

iii) Quantitative Content analysis

iv) Qualitative Textual Analysis

4 CHAPTER FOUR ANALYSIS & DISCUSSION

4.1 Introduction

The questionnaire comprising of twelve OPM3 and four own level of PMM interview questions,

which have been asked in face to face from twelve different experts of software industry, and

their responses have been summed up to prepare a list of most appropriate solutions The reason

why interviews from twelve interviewees are According to review paper: How many qualitative

interviews are enough? of National Centre for Research Methods, S. E. Baker and R. Edwards

suggests that there ought to be sample of 12 for qualitative research.

To do analysis of a qualitative research the most powerful approach considered is by doing

quantitative content analysis and qualitative textual analysis.

4.2 Quantitative Content Analysis

To do quantitative content analysis, the answers of the interviewees have been to be given with a

possible OPM3 improvement stages.

All of the responses to the questions from interviewees have been given with the suitable OPM3

improvement stage to make possibility of quantitative analysis in excel.

In below excel sheets the quantitative analysis of the content is presented in tables for each

improvement stage.

43
 Standardize
1 2 3 4 5 6 7 8 9 10 11 12

Q1 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q2 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q3 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q4 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q5 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q6 No Yes No Yes No No No No Yes No No Yes

Q7 No Yes No Yes No No No No Yes No No Yes

Q8 No Yes No Yes No No No No Yes No No Yes

Q9 No Yes No Yes No No No No Yes No No Yes

Q10 No Yes No Yes No No No No Yes No No Yes

Q11 No No No No No No No No No No No No

Q12 No No No No No No No No No No No No

Table 2: Experts responses for the standardization of project, program & portfolio management

44
Project Level Standardization

0%

Standardize
Not Standardize

100%

Figure9: Project Level Standardization

Program Level Standardization

33%
Standardize
Not Standardize
67%

Figure10: Program Level Standardization

45
 Portfolio Level Standardization

0%

Standardize
Not Standardize

100%

Figure11: Portfolio Level Standardization

Measure
1 2 3 4 5 6 7 8 9 10 11 12

Q1 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q2 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q3 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q4 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q5 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q6 No Yes No Yes No No No No Yes No No Yes

Q7 No Yes No Yes No No No No Yes No No Yes

Q8 No Yes No Yes No No No No Yes No No Yes

Q9 No Yes No Yes No No No No Yes No No Yes

46
 Q10 No Yes No Yes No No No No Yes No No Yes

Q11 No No No No No No No No No No No No

Q12 No No No No No No No No No No No No

Table 3: Experts responses for the measure of project, program & portfolio management

Project level Measurement

0%

Measured
Not Measured

100%

Figure12: Project Level Measurement

47
Program level Measurement

33%
Measured
Not Measured
67%

Figure13: Program Level Measurement

Portfolio Level Measurement

0%

Measured
Not Measured

100%

Figure14: Portfolio Level Measurement

48
 Control
1 2 3 4 5 6 7 8 9 10 11 12

Q1 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q2 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q3 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q4 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q5 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q6 No Yes No Yes No No No No Yes No No Yes

Q7 No Yes No Yes No No No No Yes No No Yes

Q8 No Yes No Yes No No No No Yes No No Yes

Q9 No Yes No Yes No No No No Yes No No Yes

Q10 No Yes No Yes No No No No Yes No No Yes

Q11 No No No No No No No No No No No No

Q12 No No No No No No No No No No No No

Table 4: Experts responses for the controlling of project, program & portfolio management

49
 Project Level Controls

17%

Controlled
Not Controlled

83%

Figure15: Project Level Controls

Program Level Controls

8%

Controlled
Not Controlled

92%

Figure16: Program Level Controls

50
 Portfolio Level Controls

0%

Controlled
Not Controlled

100%

Figure17: Portfolio Level Controls

Continuously Improve
1 2 3 4 5 6 7 8 9 10 11 12

Q1 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q2 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q3 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q4 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q5 Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Q6 No Yes No Yes No No No No Yes No No Yes

Q7 No Yes No Yes No No No No Yes No No Yes

Q8 No Yes No Yes No No No No Yes No No Yes

Q9 No Yes No Yes No No No No Yes No No Yes

51
 Q10 No Yes No Yes No No No No Yes No No Yes

Q11 No No No No No No No No No No No No

Q12 No No No No No No No No No No No No

Table 4: Experts responses for the improvement of project, program & portfolio management

Project Level Improvement

25%
Improve
Not Improve

75%

Figure18: Project Level Improvements

52
Program level Improvement

8%

Improve
Not Improve

92%

Figure19: Program Level Improvements

Portfolio level Improvement

0%

Improve
Not Improve

100%

Figure20: Portfolio Level Improvements

53
4.3 Qualitative Textual Analysis

The interviewees group of experts which all were software industry experts have come up

with almost same responses. The qualitative analysis is divided into below three parts:

Project Management:

In response to the questions related to project management process group, twelve out of

twelve software house expert responded that they have standards which they measure and

control and they are also continuously improving these for all the process groups.

In response to questions related to experts own level of PMM below are the responses for

project management level

1. Three out of twelve respondents are familiar with the project management procedures and

standards, and nine out of twelve are not familiar with the project management

procedures and standards.

2. Ten out of twelve respondents are familiar with the methods to continuously improve the

skills for project management.

3. Nine out of twelve respondents are familiar with the methods to control projects.

4. Eleven out of twelve respondents are familiar with the methods to measure

performance(KPIs)

All the twelve software houses are using agile software development methodology in which

scrum is followed as software development life cycle, in which project is initiated and all the

user stories are locked in a product back log and from product back log these stories came to

54
implementation phase then to testing phase and then to release phase, in which product is

given to end user.

Program Management:

In response to the questions related to program management process group, eight out of

twelve software house experts responded that they dont do anything related to program

management as they dont have program management in their organizations and all of them

are project based organizations, and four out of twelve software house experts responded that

they have standards which they measure and control and they are continuously improving

these for all process groups of program management.

In response to questions related to experts own level of PMM below are the responses for

program management level.

1. All twelve respondents are not familiar with the project management procedures and

standards.

2. All twelve respondents are not familiar with the methods to continuously improve the

skills.

3. All twelve respondents are not familiar with the methods to control projects.

4. All twelve respondents are not familiar with the methods to measure performance(KPIs)

55
Portfolio Management:

In response to the questions related to portfolio management process group, twelve out of

twelve software house experts responded that they dont do anything related to portfolio

management as they dont have portfolio management in their organizations.

In response to questions related to experts own level of PMM below are the responses for

portfolio management level.

1. All twelve respondents are not familiar with the portfolio management procedures and

standards.

2. All twelve respondents are not familiar with the methods to continuously improve the

skills.

3. All twelve respondents are not familiar with the methods to control projects.

4. All twelve respondents are not familiar with the methods to measure performance(KPIs)

56
5 CHAPTER FIVE FINDINGS, CONCLUSIONS &
RECOMMENDATIONS
The work described in this thesis is concentrated on to give a complete understanding of the

critical analysis of software project management best practices in Pakistan and OPM3 best

practices. This chapter is a brief overview and the conclusion of the research.

Recommendations are presented on the basis of conducted research. Future work is proposed

at the end.

5.1 Findings
Detailed discussions with all experts reveals that:

1. Pakistan software industry dont have program management and portfolio

management, as software industry is not following any maturity model, even CMMI

is not followed which is specially designed for software project management.

2. As per the analysis in the previous chapter it can be seen that Pakistan software

industry is following project management level best practices only because industry is

only focused on project management not program and portfolio management.

3. As per analysis due to lack of knowledge of PMMMs, Pakistan software industry is

not familiar with program & portfolio management.

4. Pakistan software industry is not following any maturity models even other than

OPM3.

5. Most of the software industry is project based, as most of the industry is working with

foreign clients and only focused on the requirements of one client.

6. As per the analysis most of the project managers are only technical people and they

dont have any management background so Pakistan software industry lack

knowledge of PMI & OPM3.

57
 7. Pakistan software industry dont have much certified project managers because as

said in the previous point most of the project managers are only technical people.

5.2 Conclusions
From the research conducted one can conclude that Pakistani software industry is following

best practices at project level but not working on program and portfolio management.

Pakistan software industry is not using any maturity model even CMMI is not followed

which is specially designed for software industry. Most of the industry have project managers

who are only technical people and dont have much knowledge about maturity models. If

Pakistans software industry need to grow then it should follow some MM and should have

some certified project managers.

5.3 Recommendations
Following are some recommendations:
1. Pakistan software industry should have program management and portfolio

management.

2. Pakistan software industry should follow best practice of program and portfolio

management.

3. Knowledge sessions about program & portfolio management may be conducted.

4. OPM3 or CMMI may be followed to grow.

5. Knowledge sessions about PMI & OPM3 may be conducted.

6. Industry may focus to have certified project managers.

58
5.4 Future Work
1. A study may be carried out to improve software project management in light of

OPM3.

2. As this study is conducted for Pakistan only, it may be expanded for the world.

3. A study may be carried out to compare software project management best practices in

Pakistan and software project management best practices in rest of the world.

59